AUD/USD, USD/JPY in Focus as Oil Rises, Asia Awaits US CPI Data

Asia-Pacific markets are showing mixed sentiment as oil prices edge higher amid geopolitical developments in the Gulf region, while regional equity indices diverge with South Korea's Kospi rallying on chip stocks and Japan's Nikkei holding steady ahead of the US CPI release. The Australian dollar faces potential pressure after Australia announced a world-leading pay floor for 250,000 gig delivery workers, a move that could stoke wage-driven inflation expectations and influence RBA policy considerations. Gulf states are reportedly bypassing strategic choke points as Strait of Hormuz risks persist, with a Saudi-Oman deal fitting a broader pattern of regional infrastructure diversification. President Trump's assertion of total control over Hormuz adds a layer of geopolitical risk premium to crude oil, which could support commodity-linked currencies like AUD and CAD while weighing on oil-importing nations' currencies such as JPY. Traders should closely monitor the upcoming US CPI print, as it will be critical in shaping Fed rate expectations and broad USD direction. Near-term, USD/JPY remains sensitive to both the inflation data and risk sentiment shifts across Asian markets.